Federal Bank has clocked a net profit of Rs 146.16 crore for the three months period ended June 30, 2011, registering a growth of 10.85 per cent. At Rs 354.05 crore, its operating profit was 5.58 per cent higher than during the corresponding quarter for the previous fiscal.
The total income for the first quarter went up by 28.25 per cent year-on-year to Rs 1,361.61 crore from Rs 1,061.68 crore. The interest income for the reporting quarter increased 30.78 per cent to Rs 1,244.71 crore from Rs 951.79 crore.
The general increase in interest rates coupled with deposit growth resulted in increase of interest expenses by 45.78 per cent impacting the Net Interest Income (NII) for the first quarter. The NII recorded an increase of 11.23 percent to reach Rs.459.75 crore.
The bank could maintain its net interest margin at 3.87 per cent despite the increase in cost of deposits by 120 bps and the competition in pricing prevalent in the industry.
